Why Indiana Is One of the Best States to Start a Business

Starting a successful business is no easy task, but one of the best places to do that in 2024 is none other than Indiana.

READ MORE: Indiana Among States with the Most Motorcycles in the U.S.

While I may not be a business owner, I do work in Indiana, so being aware of the state's business climate is definitely beneficial. Choosing the right location for your business can play a pivotal role in the success or failure of your venture, and it helps to have a welcoming environment in which to grow and thrive. Forbes Advisor has analyzed 18 key metrics across five categories to determine which states are the best and worst for starting a business. In Indiana's case, the results are quite favorable.

The Best State for Starting a Business

While Indiana didn't make the No. 1 spot on this list, it's still well within the Top 10. Before we dive deeper into the Hooiser state, let's take a look at what part of the country did claim the top spot. It's definitely not one I would have expected.

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The best state to start a business is none other than North Dakota, receiving a perfect scaled score of 100. This Midwestern state has a new business formation fee of just $135 and a business survival rate of 77%. Additionally, this appeal is supported by a cost of living index of 0.94, which is among the best in the nation. North Dakota boasts an abundance of financial incentives and is known for providing a strong foundation for workforce development.

Why Indiana is Among the Best States to Start a Business

According to Forbes Advisor, Indiana is ranked second in 2024 as one of the most favorable states for starting a business. Specifically, the Hoosier State boasts a scaled score of 98 out of 100 for its new business-friendly environment. Forbes Advisor has identified the following main reasons behind this ranking:

Its business-friendly environment is highlighted by a modest formation fee of $100, lowering the barrier to entry for new companies. The state also maintains a solid business survival rate of 77%, reflecting a stable and nurturing environment for business growth. Additionally, the average funding available for a small business in Indiana is notable, standing at $24,502, which signifies a supportive financial environment for entrepreneurs.

Forbes added that the economic appeal of Indiana extends beyond business statistics. For example, Indiana has a cost of living index of 0.91, which is well below the national average, making it attractive for both business owners and employees. Additionally, 64% of the state's population is in the working-age bracket, highlighting a substantial labor pool. You can read more about the most business-attractive states HERE.